Virtual reality (VR) and augmented reality (AR) are presently just buzzwords for the music industry as the technologies adoption is still in its infancy. But that has prevented some major players in the industry from making an early bet on the new tech through strategic alliances.

Roc Nation and Roc Nation Publishing recently announced licensing agreements with MelodyVR, a subsidary of London-based EVR Holdings that reportedly holds the world's largest library of VR music content. Under the agreements that cover botht he record label and publishing rights, MelodyVR will receive the right to create and distribute content for an exclusive period created with Roc Nation artists that include such names as DJ Khaled, Kaskade, Rihanna, Romeo Santos and Shakira. The agreements complements exisiting partnerships with major players in the industry, including major labels Warner Music Group, Universal Music Group and Sony Music Entertainment.

As for UMG, they concluded a strategic alliance with VR/AR entertainment and technology company Within to create and develop AR and VR music content featuring artists from the label's roster. Notably, the partnership aims to integrate the technology "across the creation, production, marketing and promotion of new musical tracks, from the recording studio to the release parties, concert stages and beyond."

While the benefits for music companies are clear - getting ahead of a technology that has the potential to create new revenue streams across all their lines of business - the biggest benefit may be to the tech companies whose technology is pretty worthless without great content that consumers crave. This is particularly true as tech companies try to accelerate adoption of VR and AR that would allow them to meet the reported market potential of $70 billion by 2020 -- up from $6.7 billion in 2016.